Real Estate Investor Magazine South Africa Dec/Jan 2016/17 | Page 60

MARKETS

Looking back at a

Tumultuous Year...
Roller coaster ride for investors
By James Paynter

W

hat a year. Where does one even start to
encapsulate a year like this soon-to-end
one of 2016? It was a year of surprises.
Of shocks, worry and despair and everything inbetween.... Recapping a year like this past one is a
difficult task.

But here are some defining moments:
• January - The Rand has a flash crash to worst
levels ever, which drives the markets back into full
panic mode. Ongoing rumblings from Nenegate
still abound. Despite this, the Rand strengthens
to below 16 by month end.
• February - Poor global growth and an
underwhelming State of the Nation speech can’t
keep the Rand from strengthening to almost 15,
but despite a fair Budget speech by an underpressure Gordhan, the Rand loses all gains made
during the month plus some, but then inexplicably
strengthens when news breaks that the Hawks are
planning to charge Gordhan.
• March - The Rand strengthens but then weakens
with Moody’s putting markets on the alert for a
possible downgrade. Deputy Finance Minister
drops a Gupta bombshell. Despite this, the Rand
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DEC/JAN 2017 SA Real Estate Investor

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strengthen. A pessimistic update by US Fed Chair
sends Rand to below 15. The Constitutional
Court rules against Zuma in the Nkandlagate
saga.
April - Zuma impeachment motion gets
crushed with ongoing Zuptagate rumblings and
revelations yet Rand ends at its strongest levels in
5 months.
May - Moody’s maintains South Africa’s credit
rating. Despite this, the Rand weakens Reports
of the imminent arrest of Pravin Gordhan sees
the Rand crash 2%.
June - S&P and Fitch keep SA’s investment
credit rating unchanged avoiding #JunkStatus.
Britain leaves the EU to shock the markets and
the world with an upset of mass proportions
#Brexit, sending Rand to 15.67 but then recovers
into month end.
July - Rand moves below 15 as markets move on
from Brexit. ailed military coup in Turkey sends
a touch of panic through the markets.
August - The Rand strengthen initially after
opposition parties make strong showing in local
elections. But then Hawks summons Gordhan.
The Rand dive-bombs 4%.
#FeesMustFall
campaign revives and gathers momentum.
www.reimag.co.za